Archive for the ‘The Market’ Category

Why 2012 is Shaping Up to be a Particularly Ugly Year: Steve Keen…

Posted on 2012 06, 11 by rockingjude

 

Adam Taggart / ChrisMartenson.com

At the high level, our global economic plight is quite simple to understand says noted Australian deflationist Steve Keen.

Banks began lending money at a faster rate than the global economy grew, and we’re now at the turning point where we simply have run out of new borrowers for the ever-growing debt the system has become addicted to.

Once borrowers start eschewing rather than seeking debt, asset prices begin to fall — which in turn makes these same people want to liquidate their holdings, which puts further downward pressure on asset prices:

 

The reason that we have this trauma for the asset markets is because of this whole relationship that rising debt has to the level of asset market. If you think about the best example is the demand for housing, where does it come from? It comes from new mortgages. Therefore, if you want to sustain he current price level of houses, you have to have a constant flow of new mortgages. If you want the prices to rise, you need the flow of mortgages to also be rising.

Freedom Rider: Journalists in Bed with the President…~They always have been~jude

Posted on 2012 05, 07 by rockingjude

by BAR editor and senior columnist Margaret Kimberley


A good time was had by all at the White House correspondents’ dinner. And why not? The corporate media and the White House both serve the same masters: corporate power and U.S. empire. “Is it any wonder that the New York Times, Washington Post and all the networks ignore torture, drone strikes, mass incarceration terror, continued bankster bailouts, high unemployment and endless war?”

Freedom Rider: Journalists in Bed with the President

“Long gone are the days of investigative journalism.”

Confidence Slips Away as Japan Battles Nuclear Peril…

Posted on 2011 03, 31 by rockingjude

Damir Sagolj/Reuters

Two women confronted the ruins that had been their neighborhood in Rikuzentakata, Japan, as they returned to try to retrieve their belongings on Tuesday.

TOKYO — After workers switched on the first set of control room lights at Japan’s crippled power plant in Fukushima last week, the Japanese government offered its strongest assurances yet that its nuclear crisis was close to being under control.

Heroic workers and firefighters continued to cool the volatile reactors by pumping in hundreds of tons of water a day. Much-awaited electricity had reached the plant after a rush to extend new power lines, ready to hook up to vital cooling systems and guide the plant to a long-term “cold shutdown.”

But less than a week later, a deluge of contaminated water, plutonium traces in the soil and an increasingly hazardous environment for workers at the plant have forced government officials to confront the reality that the emergency measures they have taken to keep nuclear fuel cool are producing increasingly dangerous side effects. And the prospect of restoring automatic cooling systems anytime soon is fading.

The recent flow of bad news from the Fukushima Daiichi Nuclear Power Station has undermined the drumbeat of optimistic statements by government and company officials who have at times tried to reassure a nervous public that significant progress is at hand — only to come up short.

“The earthquake, tsunami and the ensuing nuclear accident may be Japan’s largest-ever crisis,” the Japanese prime minister, Naoto Kan, told Parliament on Tuesday, in his most sober message to date on the nuclear crisis. “We find ourselves in a situation where we can’t let down our guard. We will continue to handle it in a state of maximum alert.”

Global Financial Fraud, Global Hope…The world financial system is one gargantuan Ponzi scheme…

Posted on 2011 03, 03 by rockingjude
by Hon. Paul Hellyer
An Address to the International UFO Congress, Fort McDowell Resort, Scottsdale, Arizona, Saturday, February 26, 2011by Hon. Paul Hellyer, P.C. Former Canadian Minister of National Defence

The world financial system is a total fraud.  It is one gargantuan Ponzi scheme, no better than the one Bernie Madoff used to swindle his friends and neighbors, and thousands of times worse if you add up the total number of victims it has ripped off over countless generations.

 

The principal difference between the two schemes is that Madoff was acting outside the law while the international banking cartel has persuaded generation after generation of monarchs, presidents and prime ministers to provide legislative protection for their larceny.

 

The banks Ponzi scheme is alarmingly simple.  They lend the same money to several people or institutions at the same time and collect interest on it from each.  What the banks really lend, however, is their credit, and what they take back in compensation for that privilege is a debt that must be repaid with interest.

 

The number of times they lend the same money is called leverage.  The practice is as old as the hills but for our purposes we can start with the goldsmiths of Lombard Street in London, England, who accepted deposits for which they issued certificates redeemable on demand.  They paid their depositors a nominal interest rate on the understanding that they could lend the money to their customers at higher interest rates.  They soon found that they could lend more than they had in their vaults because only a few depositors came in to redeem their gold or silver at any one time.  It was a scam.  It was illegal. Nevertheless they got away with it for a long while and the scam was legitimized when the Bank of England was chartered to help King William finance his war.  Rich people subscribed £1,200,000 in gold and silver, as capital, to found the bank, which then was lent to the government at 8 percent.  To show his appreciation the King allowed the bank to print £1,200,000 in banknotes and lend them at high interest rates.  In effect, the bank was allowed to lend the same money twice – once to the government and once to the people.

 

Over the years, due to the avarice of the banks and the complicity of the politicians, that ratio has increased dramatically.  In the early days of the 20th century, federal chartered U.S. banks were required to keep gold reserves of 25 percent.  That means they were allowed to lend the same money four times.  I remember when Canadian banks were required to maintain a cash reserve of 8 percent.  That means they were allowed to lend the same money 12½ times.
Today, thanks to Milton Friedman’s irrational flip-flop from being a proponent of 100% cash reserves to the opposite extreme of zero reserves, and the adoption of his ideas by the major central banks of the world in 1974, multiples have increased dramatically – in some cases to as much as 20 to 1 or more.  Banks only keep enough cash to meet day-to-day demands for those few customers who go in and request it, and consequently the fraud is virtually total.

 

The system works this way.  Suppose that you want to borrow $35,000 to buy a new car.  You visit your friendly banker and ask for a loan. He or she will ask you for collateral – some stocks, bonds, a second mortgage on your house or cottage or, if you are unable to supply any of these, the co-signature of a well-to-do friend or relative. When the collateral requirement is satisfied you will be asked to sign a note for the principal amount with an agreed rate of interest.

 

When the paperwork is complete, and the note signed, your banker will make an entry on the bank’s computer and, presto, a $35,000 credit will appear in your account which you can use to buy your car. The important point is that seconds earlier that money did not exist. It was created out of thin air – so to speak.

 

The banking equation is a species of double-entry bookkeeping where your note becomes an asset on the bank’s books, and the new money that was deposited to your account is a liability. The profit for the bank comes from the difference between the low rate of interest, if any, you would be paid on your deposit if you didn’t spend the borrowed money immediately, and the much higher rate you would be obliged to pay on your note – the technical term is “the spread.”

Unifying the UAE stock exchanges a win-win strategy…

Posted on 2010 12, 19 by rockingjude

There are no losers and only winners from a plan to unify the three UAE stock markets with Abu Dhabi simultaneously buying Dubai’s 20 per cent stake in the London Stock Exchange for $1.5 billion.

The deal reported yesterday in The Sunday Times, without revealing its source, would follow an important move to sort out the debts of Borse Dubai that closed at the end of last week. The company that controls Dubai’s two stock exchanges sold some of its shares in the Nasdaq OMX Group to raise $673 million towards repaying a $2.45 billion loan.

Another debt sorted

China’s Faster Inflation Fuels Speculation Rate-Rise Imminent …

Posted on 2010 11, 12 by rockingjude
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November 12, 2010, 12:24 AM EST

By Bloomberg News

Nov. 12 (Bloomberg) — China’s central bank may raise interest rates within weeks after inflation accelerated to the fastest pace in 25 months in October, a Bloomberg News survey of economists showed.

The benchmark one-year lending rate will rise to 5.81 percent by year-end from 5.56 percent, according to the median forecast of 11 analysts polled after yesterday’s price data. The deposit rate may climb to 2.75 percent from 2.5 percent, the survey showed.

China’s benchmark Shanghai Composite Index slid 2.6 percent as of the 1:01 p.m. local time break in trading on speculation that officials could move as early as today or this weekend after increasing banks’ reserve requirements on Nov. 10. Higher rates could complicate government efforts to limit gains in consumer and property prices by luring more money to the fastest-growing major economy.

The Loss of Trust and the Great Unraveling To Come

Posted on 2010 10, 31 by rockingjude

This is a great article~Thanks @longhawl~jude

By Charles Hugh Smith

of two minds.com

The political class and Standard-Issue Punditry (SIP) don’t “get it”: Americans have completely lost faith in their Financial Elites and government, for abundantly obvious reasons.

Anyone who believes the foreclosure crisis can be contained is deluded, because the real issue in play is the citizens’ trust in their government’s ability to govern the nation’s Financial Elites according to the rule of law. Clearly, our government has failed its citizens–utterly, completely, totally, at every level of governance (Federal, State, local) and at every level of oversight and regulation.

The bitter truth is that the nation’s Financial Power Elites are not constrained by rule of law, and as a result of this revelation Americans’ trust in their government and political class has been shattered. Despite raising their voices 600 to 1 against the TARP and related bailouts of the nation’s Financial Power Elites (who stripmined the nation’s wealth from their investment banking and mortgage banking fortresses) in 2008, the government shoved trillions of dollars of bailouts and guarantees into private hands with pathetically little control in return.In their rage at this abject, cowardly surrender of their government to the Financial Elites, the American people tossed the craven bankers-lapdogs Republicans out and replaced them with an untested young president who talked the talk and old-line Democrats.

All of whom proceeded to attach the same leash to their necks and become craven lapdogs of the Financial Elites. Less than two years after the inevitable meltdown of the Power Elites’ stripmining operation and its unprecedented rescue by the Federal government, the Financial Power Elites are once again caught flouting the laws of land as if the U.S. were a “banana republic” in which laws are “only for the little people.”

And now the inevitable calls are arising for a “Federal solution” which will bail the bankers out of the foreclosure crisis with their ownership of the political class and the nation’s wealth firmly in hand.

The people have lost their trust in their government for good reason: it has betrayed their trust.

Finextra Research – industry intelligence for the financial technology community. ..

Posted on 2010 10, 25 by rockingjude
Australian Securities Exchange entrance

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ECB CALLS FOR MANDATORY SEPA MIGRATION DEADLINE

The European Central Bank (ECB) says self-regulation on Sepa has not achieved the expected results and is calling on legislators to now set a mandatory migration timeline.
Full story:
http://www.finextra.com/news/fullstory.aspx?newsitemid=21923

EUROPEAN BANKS NEED BETTER INTEGRATED RISK MANAGEMENT – SURVEY

European financial services firms are not placing enough emphasis on risk management when it comes to decision-making and performance, while IT systems are struggling to cope with increased regulatory demand, according to research commissioned by Oracle.
Full story:
http://www.finextra.com/news/fullstory.aspx?newsitemid=21926

CORPORATES WILLING TO PAY MORE FOR BETTER SERVICE FROM BANKS – SURVEY
Over two thirds – 68% – of corporates would consider switching banks for better
customer service around on-boarding, account maintenance and query handling,
a 24% rise on the previous year, according to a survey from Finextra Research and Pegasystems.
Full story:
http://www.finextra.com/news/fullstory.aspx?newsitemid=21925

SGX IN ASX TAKEOVER TALKS – REPORT
The Singapore Exchange (SGX) is set to make a takeover offer for the Australian Securities Exchange (ASX), according to local press reports.
Full story:
http://www.finextra.com/news/fullstory.aspx?newsitemid=21924

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On the Edge with Gerald Celente – 20 August 2010 (1/3)…

Posted on 2010 08, 25 by rockingjude

Gerald Celente On The Edge With Max Keiser (Finance, War and Revolt) Part 2 of 3

THERE WILL BE NO DOUBLE DIP…..

Posted on 2010 08, 23 by rockingjude
Sweeping the pengő inflation banknotes after t...
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by Egon von Greyerz – Matterhorn Asset Management

No, there will be no double dip. It will be a lot worse. The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. Nevertheless, governments will continue to print since this is the only remedy they know. Therefore, we are soon likely to enter a phase of money printing of a magnitude that the world has never experienced.  But this will not save the Western World which is likely to go in to a decline lasting at least 20 years but most probably a lot longer.

The End of an Era

The hyperinflationary depression that many western countries, including the US and the UK, will experience is likely to mark the end of an era that has lasted over 200 years since the industrial revolution.  A major part of the growth in the last 100 years and especially in the last 40 years has been built on an unsustainable build-up of debt levels. These debt levels will continue to swell for another few years until the coming hyperinflation in the West leads to a destruction of real asset values and a debt implosion.

In the last 100 years the Western world has experienced a historically unprecedented growth in production, in inventions and technical developments leading to a major increase in the standard of living. During the same period government debt, as well as private debt have grown exponentially leading to a major increase in inflation compared to previous centuries.

[1]

Until the early 1970s the growth in credit to GDP had been going up gradually since the creation of the Fed in 1913.. But from 1971 when Nixon abolished gold backing of the dollar, virtually all of the growth in the Western world has come from the massive increase in credit rather than from real growth of the economy. The US consumer price index was stable for 200 years until the early 1900s. From 1971 to 2010 CPI went up by almost 500%. The reason for this is uncontrolled credit creation and money printing. Total US debt went from $9 trillion in 1971 to $59 trillion today and this excludes unfunded liabilities of anywhere from $70 to $110 trillion. US nominal GDP went from $1.1 trillion to $14.5 trillion between 1971 and 2010.  So it has taken an increase in borrowings of $50 trillion to produce an increase in annual GDP of $13 trillion over a 40 year period. Without this massive increase in debt, the US would probably have had negative growth for most of the last 39 years.

Total US debt to GDP is now 380% and is likely to escalate substantially.

[2]


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